In a speech last night at the Lowy Institute in Sydney Professor Li said, "China has to focus on its domestic issues and they are getting increasingly complicated. Therefore, forcing senior leaders not to pay too much attention to international issues. Domestic social, political and economic stabilities are vital for the regime.‘'

"As a big stakeholder and beneficiary of the current system, it is not in China’s interest to radically change the existing arrangement,’’ said Professor Li.

For example, he said Beijing had no intention to jeopardise its $US3.3 trillion foreign reserves.

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Despite the fact that China has been making great strides in education and international engagement, there are not enough talents that are capable of leading global organisations.

‘‘There are not enough talents in China who can play an active role in the international organisations and most talented people in China are involved in solving domestic problems,’’ said the Harvard-educated economist, who is the Mansfield Freeman Chair professor of economics at Tsinghua University in Beijing.

He said China’s contribution to the evolving global system will be slow and cautious.

'‘China’s approach will be gradualist, trying to win time to adapt to the evolution of the international monetary system.’’

Paradoxically, Professor Li had argued in a recent Wall Street Journal opinion piece titled ‘‘Put world in World Bank’’ that the next president of the bank should be from the emerging market economies.

‘‘When I wrote that article, I knew my proposal will not be accepted and Dr Kim’s election was a foregone conclusion. However, I still wanted to make an argument about the necessary change down the road.’’

On the issue of foreign investment, Professor Li urged both Australian and Chinese to be more patient and open-minded.

‘‘We have to know each other better. Australian government and business need to understand better the inner workings of the Chinese economy. People need to understand companies like Huawei better instead of relying on stereotype.’’

He hinted that the nominally Communist China is shedding its red colour fast: ‘‘Things have changed in essence in China and maybe not in name.’’

He also urged Chinese companies to do more homework in Australia and try to reach out to the local community and government officials. ‘‘Explain to them the ways the Chinese economy and companies have been changing.’’